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#MondayBlues: RBZ Bans Ecocash From Advertising Bank To Wallet Promo!

ecocash promotion

Last  week Ecocash  woke up to a national apology announcing  that  they have cancelled their Bank to wallet promotion, where 15  cows were up  for grabs,  and  of course as  usual, yours truly was smelling a rat.

Unfortunately most Ecocash fans and  ignorant commentaries  took it to the social  media blaming  Ecocash for failing  to to fulfil their  end  of the promise,  and one would just wonder if Ecocash really failed to deliver the promised cows.

However  sources close  to the  developments have divulged  to TechnoMag that the Bankers Association of Association , (BAZ) has written  to the Reserve Bank Of Zimbabwe,  (RBZ) complaining about the  “huge  cash movements”  into Steward  bank.

The move  is alleged  to have  been sanctioned  by the RBZ,  effectively banning  Ecocash from running such a promotion,  but now here is the irony.

The Reserve  Bank Of Zimbabwe has not banned or stopped Bank to  Ecocash transactions, rather, they are only targeting the promotion, this  is what  they have allegedly ordered Ecocash to stop.

“They do  not want to  see a promotion  that is advocating for  cash  movement into Ecocash  accounts or  rather Steward  Bank, they  are also in  fear  of the  unknown,  the message is  do not simply encourage subscribers to  transact, let the  process be natural”

said a commentator.

Some voices have  however  said that this  is a message  from competition, irked by huge  transactions  and profits driven by Ecocash and Steward bank, hence  they are no  longer adhering  to fair play but  regulatory limitations.

Ecocash is alleged  to have recorded a massive 80% increase since the  promotion started  and all banks have seen a huge shift  of the funds to the mobile  money payment platform, hence the alarm

Some sceptics however rubbished jealousy as  the reason  behind the transaction stoppage, since the banks are also  charging  and  making profits  from these same transactions.

“Ecocash  does  not  make any  profit  from bank to wallet transactions, the banks are the  ones benefiting, they rather make profits from the transactions after one has  moved the funds into the wallets”

said  an analyst.

Effort  to get a comment from the Reserve bank  Governor  Dr Mangudya were fruitless as his mobile phone was unreachable and messages sent were not responded to by  time of publishing.

The Reserve  bank is  more concerned about  the promotion of cash movement itself, against a legal statute  that has allowed  and limited that to a maximum  monthly limit of  $150 000 and a daily cap of $35 000. However the maximum once off transaction  is still $5 000 per transaction.

ecocash bank limits

With all these restrictions in  place, Ecocash has become over regulated by statutes and fear of the  unknown and these limitations have  not  made life easier for an ordinary man  in the streets.

A daily  limit  of $35 000 is still  however way  to  low for most  people already trading using USD where that figure  fetches a little of $200 USD, surely with 90% of transactions being driven by the informal market the restrictions are only  retrogressive and counter production for an informal market economy.

The biggest question has been on the  appetite to  restrict  transactions on Ecocash, as the biggest platform moving  payments in Zimbabwe, earlier on the government had  called  them a  ponzi scheme, a case they rigorously investigated and still to announce their findings.

The Financial Intelligence  Unit under the  RBZ is  however worried about cash movements fuelling parallel  markets rates  and destabilising the economy, Ecocash has been fingered as an easy  platform promoting such cash movement hence  they remain tight on the platform.



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